Hey guys today we’re going to talk about the highest paying finance jobs. Some of which can pay over $200,000 per year for an entry-level role. That’s right six-figure pay packages for fresh college grads.
Let’s jump in the first high paying finance job is:
1. Investment Banking
They’ve accrued directly out of college where a 21-22 year old graduate can earn one hundred and sixty thousand dollars in the first year so what do investment bankers do. Investment bankers really just do two things. They help companies buy other companies or sell themselves to other companies.
For example, when Amazon passed Whole Foods in 2017 the investment bankers at Goldman Sachs advised amazon on the purchase and the investment bankers at Evercore advised whole foods. On the sale this is known as mergers and acquisition or M&A .
For short, they help companies raise money large. Companies often need more money to fund their expansion than they have available in their bank account take Tesla for example. Despite being a public company, Tesla burns a lot of cash and need more money than they have in the bank to fund their expansion plans. So they need to raise money but where are they going to get the money from that’s where the investment bankers come into play the investment bankers help companies raise the money they need from investors.
2. Private Equity
Private equity is arguably one of the most lucrative finance careers that anyone can have. The starting salary for a private equity professional known as associates is often two to three hundred thousand dollars for a 23 to 25 year old. Every year only a few hundred people in the entire world will get accepted into the top private equity firms. But once you’re in, you stand to make a ton of money.
So, what exactly do private equity firms do?
Private equity firms are investors. They invest in companies. It’s very similar to what you’re doing when you buy stocks on the stock market X instead of just buying a piece of a company. Through stocks they’re buying the entire company. That’s right they buy the entire company which often cost billions of dollars. They make money when their investments go well leading. Private equity firms are KKR Blackstone, TPG, Carlyle Apollo global, Bain Capital etc.
If you can secure an associate role at any of these companies. You’re in for a very lucrative career.
3. Investment Analyst
The third high paying and arguably the highest paying finance job is Investment analyst role. At a large hedge fund you can earn even more than the private equity investment professionals in a single year. Top performing hedge fund managers take home tens of millions to billions of dollars in a single year. In fact many of those on the Forbes billionaires list are hedge fund managers Ray Dalio, Ken Griffin, Stephen Cohen, Bill Ackman, David Einhorn, Larry Robbins etc.
So, what do these hedge fund managers do? In simple terms hedge funds are investors, they basically buy and sell stocks so if you’re an investment professional at an equity hedge fund. Your job is to invest in stocks. It’s just like buying stocks for your own personal portfolio except. You do it with billions of dollars and you get paid a lot to do it at a large.
Hedge fund analyst can expect to make anywhere from two to seven hundred thousand dollars a year. As you become more experienced you’ll become a portfolio manager. Once you’re p.m. your earnings will be largely dependent on your investment performance. Your pay will be largely dependent on how much profit you made for the firm in the stock market the sky is the limit. There are hedge fund managers who take on billions of dollars in a single year
4. Equity Research
A fourth high paying job in finance is equity research. The word equity is just a fancy word for stock so taken together equity research just means stock research. The job is exactly what it sounds like, you research stocks. Entry-level analysts make approximate 120,000 dollars in their first year.
But wait a minute listen this sound awfully a lot. Like the work you do at a hedge fund that invests in stocks. The work in equity research is very similar to the work at an equity hedge fund. You’re researching a stock, you mostly do the same things the investment professionals that hedge funds do. Screening stocks, reading company reports analyzing, financials talking to management teams, and industry experts etc.
While the work is very much similar you’re doing it in a different capacity. In equity research you’re doing the research and analysis to publish it into a report which your firm then sells the clients. You’re basically doing the work for your clients and educating them about different stocks. You’re in the business of selling your homework and unfortunately selling your research reports to clients just isn’t as profitable of a business model as investment management.
The business just doesn’t make as much money as one that manages and invests other people’s money. That’s why Equity Research analysts tend to make a lot less than hedge fund investment professionals. Because their companies make a lot less money than hedge funds it has less to do with our own capability and much more to do with how much profits their employers make.
The good thing about the Equity Research Analyst program is that it’s often a feeder into hedge fund investment analyst roles. It’s very rare and very difficult to get a hedge fund role with our prior investment banking private, equity or equity research experience.
Equity Research entry-level jobs will provide you with a fantastic learning, experience and develop a strong foundation on which you can launch a career in investing. There are many other types of jobs in finance such as
- Fundraising bank telling wealth
- Management financial planning
- Analysis or corporate development
- Company’s sales and trading
Generally the pay isn’t as certain and as lucrative as these jobs. So these are some of the highest paying jobs and Finance which one’s your favorite hope you liked the blog and remember to share it with the needing ones.